A connection between Piedmont’s future debt exposure and lack of voting power –
Participation in a regional Joint Powers Association of 15 members urged by StopWaste will again be looked at by the Council on Monday, February 4. In an effort to address Council concerns regarding Piedmont’s liability for the debts of this new regional agency known as the “Energy Council”, Assistant Planner Kevin Jackson prepared a supplemental staff report.
The Energy Council will have the power to “incur debts, liabilities or obligations”.
The Staff report advises the Council of its further discussions on JPA language to attempt to shield the City of Piedmont from future liability for the debts of this new regional agency. The staff report does not address the problem of future changes to the JPA agreement, which may be amended by a 2/3s vote of the membership at any time in the future. The JPA states:
AMENDMENTS
This Agreement may be amended by the affirmative vote of the governing bodies of not less than two-thirds of all Agencies.
The City of Piedmont is 1 of 15 entities being solicited for the regional agency. Piedmont will be entitled to 1 out of 15 (or more) votes.* All member agencies, including Piedmont, will be governed by any 2/3s vote of the members regarding future debt obligations and contributions. A solution to limit this future risk is not offered.
The JPA will be authorized to incur debt for any energy project or purpose “to support research, development, demonstration, innovation, and commercialization of sustainable energy technologies by public and private entities operating in Alameda County”, as well as “to acquire, construct, manage, maintain, operate and control any buildings, works, or improvements”. These broad provisions would appear to authorize a wide range of energy-related projects, including the construction of energy-saving buildings, enterprises, or proof-of-concept power plant for which substantial debt may be required.
The supplemental staff report outlines the various purposes of the Energy Council, including seeking grants and setting forth “opt-in” ordinances for members to adopt. Specific advantages to the City of Piedmont obtained by joining the JPA are not specified in the staff report.
The distinction between the new Energy JPA and a recently terminated JPA, which resulted in liabilities of approximately $200,000 to the City of Piedmont based on its single vote out of 14 members, has not been clarified.
The JPA provisions originally proposed by StopWaste included the power to “impose taxes or fees on residents, businesses, property owners or any other entity, public or private”. This power was eliminated following objections from a number of the proposed member agencies.
*The City of Piedmont will have 1 vote. The other 14 entities being solicited as members will also have at least 1 vote. Piedmont’s voting power (1 of 15) will decrease if the regional agency adopts a “weighted” voting structure giving 2 votes to larger entities (e.g. Oakland, Fremont, Hayward, and the County of Alameda). The final voting structure has not yet been determined.
